First Community Bankshares reports Q1 earnings, dividend

BLUEFIELD, Va. - First Community Bankshares, Inc. (NASDAQ:FCBC), a regional bank with a market capitalization of $731 million and a P/E ratio of 14.2, announced unaudited financial results for the first quarter ended March 31, 2025, with a net income of $11.82 million, or $0.64 per diluted common share. According to InvestingPro analysis, the company maintains a "GOOD" overall financial health score, with particularly strong momentum metrics. The bank also declared a quarterly cash dividend of $0.31 per common share, payable on May 23, 2025, to shareholders of record as of May 9, 2025. The current dividend yield stands at 3.22%, with InvestingPro data showing a 6.9% dividend growth over the last twelve months. The company has impressively maintained dividend payments for 32 consecutive years.

The financial institution’s net interest margin stood at 4.34% for the quarter, a slight decrease compared to the same period in the previous year. This was primarily due to a reduction in interest income from loans and securities available-for-sale, which fell by $2.74 million and $470 thousand, respectively. The average balance for loans and securities available-for-sale also saw declines of $154.04 million and $89.74 million, respectively. However, these decreases were partially offset by an increase in interest income on interest-bearing deposits with banks.

Noninterest income saw an increase of approximately $970 thousand, or 10.48%, compared to the first quarter of 2024. This rise was mainly attributed to a boost in service charges on deposits and other operating income. Noninterest expense also went up by $1.56 million, or 6.66%, predominantly due to higher salaries and benefits.

The annualized return on average assets (ROA) was 1.49% for the first quarter of 2025, a decrease from 1.60% for the same period in 2024. The annualized return on average common equity (ROE) also experienced a dip to 9.49% from 10.18% year-over-year. Despite these decreases, InvestingPro analysis indicates the stock is currently trading slightly below its Fair Value, suggesting potential upside opportunity. Subscribers can access 6 additional exclusive ProTips and comprehensive valuation metrics.

On the balance sheet, consolidated assets totaled $3.23 billion as of March 31, 2025. The bank reported a decrease in loans of $33.39 million and a decrease in securities available for sale of $40.19 million from the end of the previous quarter. Deposits slightly decreased by $6.77 million. Shareholder equity saw a reduction of $29.98 million or 5.69%, primarily due to a special cash dividend paid in the first quarter of 2025.

Non-performing loans to total loans increased to 0.85%, and the bank experienced net charge-offs of $1.39 million, or 0.24% of annualized average loans. The allowance for credit losses to total loans was 1.42% at the end of the quarter.

The bank, which operates 53 branch locations across Virginia, West Virginia, North Carolina, and Tennessee, has marked its 40th consecutive year of regular dividends to common shareholders.

This report is based on a press release statement from First Community Bankshares, Inc. and presents the financial performance and dividend declaration of the company for the first quarter of 2025. The stock has shown resilience with a 26.87% total return over the past year, while maintaining a conservative beta of 0.52, indicating lower volatility compared to the broader market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.